Rohit Jagtap

Introduction\r\n \r\n'Insider trading' means dealing in Securities of a company by its Directors Employees or other Insiders based on Unpublished Price Sensitive Information. Such dealings by Insiders erode the investor's confidence in the integrity of the Management and is unhealthy for the capital markets.\r\n\r\nThe Securities and Exchange Board of India (SEBI) in its endeavour to protect the interests of investors in general had formulated the SEBI (Insider Trading) Regulations 1992 under the Powers conferred on it under the SEBI Act 1992. These regulations came into force with effect from 19th November 1992 and the same were made applicable to all companies whose shares were listed on Indian Stock Exchanges.\r\n\r\nTo strengthen the existing regulations and to create a framework for prevention of insider trading SEBI had constituted a committee under the Chairmanship of Shri Kumar Mangalam Birla to review the regulations. The recommendations of the committee were considered and approved by SEBI Board and accordingly SEBI has amended the existing regulations. The amended regulations were notified in the Gazette and made effective from February 20 2002. These regulations are now called Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations 1992 (hereinafter referred to as the Regulations). The amended Regulations not only regulate insider trading but also seek to prohibit insider tradin